Costco Is Tackling Big Changes In 2024
For many people, the new year brings resolutions to change for the better. But large companies and corporations are not immune to this promise of a blank slate and also hope for the change that a new year can bring. Costco — everyone's favorite place to get rotisserie chicken or the famous $1.50 hot dog — is one major company that's expecting some big changes in 2024.
During one of Costco's quarterly earnings calls in late 2023, Chief Financial Officer Richard Galanti warned that increases in membership fees will be happening and that "it's a question of when, not if," according to USA Today. The membership fees have stayed the same since 2017, when they increased from $55 to $60 for a Gold Star membership and from $110 to $120 for an Executive membership. On top of that, customers can also face hidden fees when shopping at Costco if they're not careful. While there is no guarantee that the price hike will take place in 2024, it would make sense, given the other changes that the company has announced will take place this year.
Costco is growing and opening new locations
Richard Galanti also shared that Costco will be opening 31 new stores in 2024, so if this news was irrelevant to you in the past, maybe you'll have a store nearby soon. Some of those new locations will be in Daytona, Florida; Mt. Juliet, Tennessee; and Richmond, Texas. In contrast, only 23 new stores were opened in 2023.
According to The U.S. Sun, along with these new stores, Costco will also be unveiling its largest store yet. The new Costco location in Fresno, California will be over 241,000 square feet, which is almost 100,000 square feet bigger than the typical store. In addition to a regular storefront, this location will have an online order fulfillment center, a car wash, and a gas station.
The company is launching some new international locations as well, with stores opening in Zaragoza, Spain in May 2024 and Jiangning, China in June 2024. Costco also just opened a new business center in Anchorage, Alaska, one of only 28 business centers worldwide. However, these centers operate a bit differently than a typical store. While they're open to all members, they sell more items in bulk and cater to business owners.
Shopping will look different in 2024
In addition to new locations, Costco is making some changes that will make day-to-day shopping look a little different for customers. First, it might be a bit more difficult to get in. At the beginning of 2024, the company began testing out the scanning of membership cards in an attempt to stop people from sharing memberships. Rather than simply flashing your card at the entrance, you may soon have to stop and scan your card before you're allowed entry.
Another shopping change will likely be welcomed by most members: app upgrades. Some of Costco's major competitors have app features that allow customers to scan barcodes while they're shopping. While some progress has been made with select Costco locations adding price checkers to stores, the company also has plans to upgrade its app to include a barcode scanning feature in the future, but no date has been set yet. On January 1, Craig Jelinek stepped down as CEO, so it's likely that these won't be the only changes that customers will see at Costco in 2024 as Ron Vachris takes the lead.